The Presidency has clarified that the proposed tax reforms, including changes to Nigeria’s Value-Added Tax (VAT) distribution model, are intended to benefit all regions equally.

This response follows opposition from the Northern Governors’ Forum, a coalition of governors from Nigeria’s 19 northern states, who expressed concern over aspects of the reform at a meeting held on October 28.

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Bayo Onanuga, Special Adviser to the President on Information and Strategy, disclosed this in a statement released on Thursday.

Led by Governor Muhammed Inuwa Yahaya of Gombe State, the governors, supported by traditional rulers like the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, cautioned that the proposed VAT model might disadvantage their states.

The statement reads, “While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.

“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.

“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.

“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.

“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.

“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.

“The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.

“It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.

“The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.

“The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.

“Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.

“At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.

“The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

“Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

“The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.

“On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.

“The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed.

“The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

“The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services.

“This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.

“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country.

“There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.” It added

The Nigerian Labour Congress (NLC) is contemplating fresh battles with the Federal Government of Nigeria over the minimum wage in light of the increasing cost of living.

Indications have emerged in the media that the NLC might call on the federal government to undertake a new review of the minimum wage in response to the rising cost of living.

President Joe Ajaero shared this information during the 8th Quadrennial Delegates Conference of the National Association of Nigeria Nurses and Midwives (NANNM). He emphasized that organized labor will firmly advocate for the government to fulfill its commitment to recommission the Port Harcourt, Warri, and Kaduna refineries.

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He said: “As it is today, our choices are very limited. It is either we find a way to collectively overcome the forces that are bent on keeping us down as a people or we completely surrender to them while wringing our hands in hopelessness.

“The forces of neoliberalism must be challenged and the trade union movement remains the only viable force in Nigeria and in the world that can creatively engage it and mitigate its stranglehold on our nation.

“We must offer strong counterpoise to their prebendal logic and must proffer newer arguments to triumph over their quest for profit at the detriment of the social will. It is only by remaining strong and united that we can hope to achieve that.

“It is sad, but we cannot afford to keep our public refineries shut while still importing refined petroleum products. We demand a review of our salaries in lieu of its eroded values.

‘’We must together demand the re-commissioning of Port Harcourt, Warri and Kaduna refineries in keeping with the agreement we had with the federal government on the 5th day of October, 2023.

“We therefore counsel the leadership that will emerge today, remember that your role is critical to securing the welfare of our healthcare workers. True leadership transcends titles and positions; it is reflected in the impact you have on the lives of those you serve.

“Advocating for fair working conditions, championing healthcare workers’ rights, and striving for equity are not just duties—they are the marks of meaningful leadership.”

Hon. Sulaiman Abubakar Gummi, the representative for Gummi/Bukkuyum Federal Constituency in Zamfara State, has officially defected from the People’s Democratic Party (PDP) to the All Progressives Congress (APC).

His defection has fueled debate in the House of Representatives, with Minority Leader pressing for Gummi’s seat to be declared vacant.

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The minority leader argued that the Constitution mandates a lawmaker’s seat be declared vacant in cases of defection, except where there is a crisis within the party.

With no recognized division within the PDP, he contended that Gummi’s defection should render his seat open.

The Speaker, however, dismissed the Minority Leader’s call, ruling him out of order.

More to follow………